Tullow Oil plc (LON:TLW) expects to report revenue of US$0.9bn for the first half of 2018 and to generate US$0.3bn of free cash flow.
The Africa-focused oil & gas producer said the strong cash flow had enabled it to reduce net debt to around US$3.2bn from US$3.5bn at the end of 2017.
READ: Tullow Oil says it is on-track to hit production target
Tullow's 2018 full year working interest oil production forecast range has been upgraded to 86,000-92,000 barrels of oil per day (bopd) from 82,000-90,000 bopd.
"Tullow has performed strongly so far in 2018. With substantially reduced gearing and financial discipline embedded across the group, we are now able to focus on the growth of the business,” said Paul McDade, the chief executive of Tullow.
Tullow invites contractors to drill 300 oil wells in Turkana. https://t.co/51i9U7C7OH pic.twitter.com/KAk4C6J1mi
— Smart Company (@TheSmartCompany) June 27, 2018
“We are accelerating production and cash flow growth across West Africa, we continue to make good progress towards sanctioning our developments in East Africa and, having refreshed the exploration portfolio, we are about to embark on a multi-year frontier drilling campaign targeting high-impact prospects in Africa and South America. There is much to look forward to for the remainder of the year and beyond," he added.
Shares in Tullow were down 1.3% at 247.1p in the first hour of trading.
@TullowOilplc has contracted a second rig, the Stena Forth, a sixth-generation drillship, to work on its drilling programme in Ghana.
— Tullow Oil plc (@TullowOilplc) June 28, 2018